Asked by
Nessa Brown
on Oct 27, 2024
Verified
(Table: Cakes) Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 2 mixers,her average fixed cost _____ in the range of output between 100 and 400 cakes.
A) increases
B) decreases
C) remains the same
D) can't be calculated
Average Fixed Cost
The fixed costs of production divided by the quantity of output produced. It decreases as production increases.
Range of Output
The spectrum of quantity of goods or services produced, from minimum to maximum, that a company or an economy can achieve.
Mixers
Devices or substances used in the preparation of alcoholic beverages to add flavor or dilute strength, such as soda, juice, or tonic.
- Assess and calculate the mean values of fixed, variable, and total expenditures.
- Evaluate how the quantity of products produced impacts cost assessments.
Verified Answer
LL
Learning Objectives
- Assess and calculate the mean values of fixed, variable, and total expenditures.
- Evaluate how the quantity of products produced impacts cost assessments.